As we approach another cycle of risk aversion, with the dollar staring as the head master of risk aversion haven, (taking the lead out of the Japanese Yen which clearly lost it’s allure lately) we start today’s London trading session with a strong performance of the Australian dollar verses major pairs.
AUDUSD is fighting its way up this morning, closing on the first main resistance level at 0.6415,
I expect it to have some difficulty in clearly breaching above this level today, especially, if the Dollar will continue its global bullish trend.
However, if the pair will manage to build up a base above 0.6415, it is most likely to test 0.6520 in a matter of days.
The move did come as a surprise, after the Australian central bank (RBA) unexpectedly left rates unchanged on tonight’s meeting. The market was counting on a slash of at least 0.25% from 3.25% to 3.00% on overnight borrowing costs.
Consequently, demand for the AUD rose sharply overnight.
On the Downside, first support area for AUDUSD should be around 0.6387.
Australian dollar higher on unexpected rate decision
